The project aims to demonstrate the viability of an innovative business model for the bulk sale of energy produced by a micro hydro plant to nearby villages, which would contribute to the sustainability of the plant by providing increased finances from the sale of this excess energy.
More than 2,500 micro hydro plants have already been installed in Nepal. As a result of government subsidies, the installation of plants with higher capacities than necessary to meet the actual electricity demand is a common problem and leads to the production of excess energy that is wasted. The micro hydro plants also have to cope with weak cash flow and are operating unsustainably. To solve this issue, transmission and distribution lines will be established and managed to sell the electricity produced and provide around 500 households with reliable energy. The specific objectives of the project are:
- To develop a new role of energy distributor to manage the micro hydro power transmission & distribution lines and energy sales in the village
- To increase access to a reliable energy supply for household electrification and rural enterprises
- To disseminate the lessons learned and advocate the up-scaling possibilities of the business model
This project aims to contribute to the vision of “Building Back Better” to rebuild disaster-resilient communities by restoring sustainable energy access. The contribution will be in the form of the restoration of the earthquake-struck micro hydro systems in order that the livelihood options for communities and individuals can be re-established.